At the moment the spot rate is testing the intermediate resistance of its medium term bearish channel at 104.40 and is about to decline. However, a breakthrough of these levels will release a potential enabling to reach its upper limit in the point 106.10.
Technical indicators provide sell-signals but approching the oversell zone supports the assumption of a breakdown of its resistance. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
Proceeding from previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 104.40 with the 1st objectives seen at 105.00 and 105.20 levels. A breakdown 104.20 will invalidate this scenario.